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International Business Machines vs Hewlett Packard Enterprise: IBM and HPE compared
International Business Machines is the larger company: $17.1B of revenue in its latest quarter (Q3 2026) against $12.2B for Hewlett Packard Enterprise (Q3 FY26). Hewlett Packard Enterprise is growing faster (+34% against +5% a year earlier). International Business Machines is more profitable, with an operating margin of 14.5% against 11.4%.
Where the money goes: IBM and HPE
International Business Machines (IBM) · Q3 2026
International Business Machines, Q3 2026: revenue $17.1B (+5% year over year), operating margin 14.5%, net earnings $2.2B, operating cash flow $4.0B. The chart follows the revenue to costs, profit and cash.
Hewlett Packard Enterprise (HPE) · Q3 FY26
Hewlett Packard Enterprise, Q3 FY26: revenue $12.2B (+34% year over year), operating margin 11.4%, net earnings $1.5B, operating cash flow $1.6B. The chart follows the revenue to costs, profit and cash.
| International Business Machines (IBM) | Hewlett Packard Enterprise (HPE) | |
|---|---|---|
| Latest quarter | Q3 2026 | Q3 FY26 |
| Revenue | $17.1B | $12.2B |
| Revenue growth, Y/Y | +5% | +34% |
| Gross margin | 56.8% | — |
| Operating margin | 14.5% | 11.4% |
| Net earnings | $2.2B | $1.5B |
| Net margin | 12.8% | 12.6% |
| Operating cash flow | $4.0B | $1.6B |
| Free cash flow | $3.7B | $958M |
| Market value | $233.6B | $64.0B |
| P/E | 20.9× | 22.9× |
| Analysts’ mean target | $259.30 | $72.20 |
Where the revenue comes from
International Business Machines
- Sales: $8.9B (52%)
- Services: $8.0B (47%)
- Financing: $192M (1%)
Hewlett Packard Enterprise
- Cloud & AI: $9.0B (74%)
- Networking: $2.9B (24%)
- Corporate Investments and Other: $278M (2%)
Questions
Which is bigger, International Business Machines or Hewlett Packard Enterprise?
International Business Machines is the larger company: $17.1B of revenue in its latest quarter (Q3 2026) against $12.2B for Hewlett Packard Enterprise (Q3 FY26).
Is International Business Machines or Hewlett Packard Enterprise growing faster?
Hewlett Packard Enterprise is growing faster (+34% against +5% a year earlier).
Which is more profitable, International Business Machines or Hewlett Packard Enterprise?
International Business Machines is more profitable, with an operating margin of 14.5% against 11.4%.
More: International Business Machines earnings · how International Business Machines makes money · Hewlett Packard Enterprise earnings · how Hewlett Packard Enterprise makes money
From the companies' latest 10-Q, 10-K or earnings release (10-Q filed Oct 22, 2026; 10-Q filed Sep 3, 2026). Fiscal quarters can end on different dates. Not investment advice.